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FINANCIAL AID & SCHOLARSHIPS
Sources for Financing a College Education
FAMILY RESOURCES
There is no other way of saying it--attending college is an expensive proposition. The only sure bet in finding money to finance a college education is looking at the college savings plan(s) that your family has established. This is the only money that you can truly count on for paying for college costs. And colleges expect that you will contribute some of your own resources, hopefully from these established college savings plans, toward the cost of your education. Remember, the only free money that you might get, meaning money that you do not have to pay back, will come in the form of scholarships or grants. Scholarships are for the truly gifted. Grants are for the truly needy. If you fall somewhere in between, then your family savings will surely be a factor in financing a college education. To help families plan for meeting college costs,
the Glenbard South Guidance Department sponsors a Financial Planning Seminar for parents each year in November. For more information, call the Illinois Student Assistance Commission or ISAC at 1-800-899-4722 or connect to their website: ISAC-ONLINE
UNIVERSITY SCHOLARSHIPS AND FINANCIAL AID
Once a student has narrowed down his/her college choices to those colleges to which the student will apply, it is time to contact the financial aid offices of the colleges. Remember that the different types of aid that a student receives --scholarships, grants, loans, and/or work study--will be packaged and offered to you by the college you attend, regardless of how you applied for financial aid.
When you call the college financial aid office the first question should be, "What forms do I need in order to apply for financial aid?" Nearly all colleges will want you to fill out the FAFSA, or Free Application For Student Aid. (View the FAFSA section later, or click here now:FAFSA.
Another form commonly used, usually by private colleges, is called the PROFILE. If a college wants the PROFILE, it will want to take a closer look at such items as home equity and retirement plans that the FAFSA does not consider. In addition, the college may have its own financial aid form. Only by filling out all required forms will you be eligible for financial aid, so it is indeed a worthwhile, although time consuming activity.
Another request that you make when calling the college financial aid office is, "Please send me a list and description of all university scholarships for which I might be eligible." Nearly every department in the college offers several scholarships for students in their major. In addition, many colleges, particularly private colleges, have scholarships in the name of benefactors to the college. Some of these scholarships can be full ride scholarships , that is they cover all costs, including tuition and room and board. Don't overlook these valuable scholarships!
Another good question for the financial aid office is, "If I show financial need, what percent of my demonstrated need will your school cover?" Some colleges will cover 100% of demonstrated need, while others might cover only 80%. If cost is a determining factor in choosing a college, this practice, called "gapping" could be the determining factor. For example, let's say that College A and College B each costs $10,000 and your demonstrated need is $6,000. If College A covers 100% of demonstrated need, you will receive $6,000 in financial aid. If College B practices "gapping" and will only cover 80% of need, you will receive only $4,800 in financial aid. To attend college B you might have to take out an additional loan to cover the unaccounted for $1,200.
This leads to another important fact concerning the college financial aid office. While they might not admit it, many colleges will negotiate with you. In the above scenario, if College B is the school you like best, but financial aid is a major consideration, it is suggested that you negotiate with the financial aid office. Actually, some colleges might be offended if you use the word "negotiate" . Instead, present the financial aid officer at College B with the package received from College A, and ask them to "reevaluate" their financial aid package. You will have better luck with this at small, private colleges. State schools probably will not reevaluate their financial aid packages and the Ivy League schools don't have to, since they have so many students who apply and will pay. However, go ahead and ask, all they can
say is "no".
PRIVATE SCHOLARSHIPS
Another general source for financial aid is the vast number of private clubs, fraternal organizations, and societies in your hometown or their state and national affiliates. This would also include employers or labor groups who offer scholarships or other financial aid to employees, members or their dependents. Searching for these scholarships can be a very time consuming business. Rather than trying to track down all of these scholarships individually, there are several reliable ways to find this information in much less time.
The Glenbard South Guidance Department Scholarship List
This list contains all of the scholarships received by the school throughout the year. The list is made available to students on the Guidance web page and is updated approximately every month. Applications or application information are kept in files in the Guidance Office with easy student access. If you have any questions, please see Mr. Manson or Mrs. Pauliks.
FEDERAL AND STATE GRANTS, LOANS, AND WORK STUDY
A variety of need-based grants, loans, and work study opportunities are administered through the federal and state governments. Students become eligible for these sources of aid by filing the FAFSA form after January 1 of their senior year. In Illinois, these programs are administered by the Illinois Student Aid Commission or ISAC. To learn more about these programs call ISAC at 1-800-899-4722 or connect to their website here: ISAC-ONLINE
LOANS
If, for some reason, you don't get a scholarship, don't give up. Nearly every college or vocational school has loan funds at its disposal. Many organizations also offer loans. Most loans provide for repayment following your graduation. Consider carefully your repayment responsibilities before you borrow. You're betting on yourself when you borrow to further your education.
Before borrowing a penny, it is a good idea to call the financial aid office of your college to ask if the college participates in the Direct Student Loan Program. If they do, the college can set up your loan, rather than having to apply at a bank. If the school does not participate in this program, then you will have to apply for these lower interest loans through a bank. Most banks participate in the Stafford Loan program, so you might want to start with your own bank. Since some of these federally subsidized loans have loan limits, you might not be able to borrow enough to cover all of your college costs. Never fear, another program, the PLUS loan, will allow your parents to borrow any remaining costs not covered by your financial aid package. For more information call ISAC at 1-800-899-4722 or connect to their website here: ISAC-ONLINE
FAFSA or Free Application for Federal Student Aid
Wat It Is
The FAFSA or Free Application for Federal Student Aid is an application form used to determine a student's eligibility for state and federal need-based grants, loans, and work study programs.
When To File
The FAFSA cannot be filed until after January 1 of the year you intend to begin college, since the information required for the form is based on your previous year's tax information. Even though you might not have all of your tax information on January 1, you can still submit the FAFSA by supplying estimated information which you can correct later. However, waiting until you have received your tax information is the best way to complete the form. If you can submit the form by February 1, there will still be money available should you qualify for any of the programs.
How It Works
You complete and submit your FAFSA online.
The central processor system matches your application information against several national databases to verify your eligibility for aid. For example, it checks your Selective Service status, your Social Security Number, and your citizenship status.
The CPS checks your data for inconsistencies.
The CPS evaluates your finances and calculates your Expected Family Contribution or EFC.
The CPS incorporates your EFC into a multi-part eligibility document called a Student Aid Report or SAR.
The CPS sends you a copy of your SAR. You check it over for accuracy and report any errors. This is the form you use if you originally sent in estimated data.
The CPS transmits your data to all colleges you list on your FAFSA.
The CPS transmits your data to your state higher education agency.
Based on the information received through this process, your college sends you a financial aid award letter.
Ways To File
FAFSA on the web is a user-friendly program that allows you to apply for federal student aid from a personal computer equipped with the
Windows format and modem. FAFSA on the Web will create an electronic record of your application and transmit it
To access FAFSA on the Web, click here now: FAFSA.
Determining Your Financial Need
Determining Your Estimated Family Contribution
Need analysis is a standardized process of evaluating financial ability to pay for a college education.
If you are applying for any financial aid based on need, you submit need analysis information, usually through the FAFSA form, but some colleges use a form called PROFILE and some use their own form.
Call the financial aid office of your college choice to find out which form(s) are used. The information is evaluated using a method approved by the U.S. Congress. The analysis results in an amount called the Expected Family Contribution or EFC. The EFC, then, is the amount of money a student and their family are expected to contribute to the costs of attending college. The colleges then use this EFC to determine the Financial Aid award they will offer. Many colleges will estimate your EFC if you call the financial office. This will give you a ballpark figure on which to base your college costs.Determining Your Financial Need Your financial aid administrator at the college calculates your cost of attendance and subtracts the amount you and your family are expected to contribute (EFC) toward that cost. If there is anything left, you
are considered to have financial need. In other words The cost of attendance minus the Expected Family Contribution equals Financial Need.
Determining Your Financial Aid Package
The college then decides how much of this need will be met by federal grants, scholarships, loans, and/or work study. Remember that each college puts together their own award package based on that particular college's financial structure. So even though all of the colleges receive the same information (EFC) from the FAFSA, they will package your financial aid award differently. That is why you are likely to receive a larger award package from a private college that has a large endowment and a smaller package from a state university that has little or no endowment funds.
WEB SITES FOR FINANCIAL AID INFORMATION
HELP AT YOUR FINGERTIPS FOR FAFSA COMPLETION WWW.COLLEGEZONE.COM
Illinois Student Assistance Commission or ISAC: ISAC-ONLINE
FAFSA on the Web: FAFSA.
Managing College Costs - Free video seminars, articles and featured links - all designed for parents managingcollegecost.com
SFA - connects students with US government services and information, including careers, planning an education, and paying for college www.students.gov
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